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Microeconomics and Macroeconomics


Microeconomics is the branch of economics that study the behavior of small business units. It analyzes the markets  forces of supply and demand ,consumer behavior and their effect on prices of commodities and services.


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Macroeconomics is the study the aggregate economy. It therefore focuses on the broader or the entire economy.

Differences between microeconomics and macroeconomics

Microeconomics concentrates on the behaviors of small usiness units and households. Macro economics focuses on the industry and the whole economy.Macroeconomics examines the economic growth Microeconomics determines how households  resources are allocated while macroeconomics determines resource allocation of an entire economy.

A microeconomic situation
Reducing the household budget. This can be done by foregoing some of the items that are usually bought that one can do without. This is a microeconomic situation because it involves an individuals consumer behavior.

>An example of a macroeconomic phenomena

Determining the unemployment levels of the united states of America. Impact higher unemployment levels on an individual.
If a country  has higher rates of unemployment  crime rates increases. There are a lot of foreclosures and evictions due to the inability of those affected to services their mortgages or rents. Higher rates of malnutrition due to the inability to afford proper diets. Higher number of case of individuals suffering from mental stress and low self-esteem.

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